Which of the following statements is true as a result of Federal Reserve efforts to rescue the financial industry from the financial crisis of 2007 and 2008?
A. From February 2008 to May 2009, the Fed oversaw the consolidation of 20 major financial
institutions into fewer than a dozen.
B. From March 2008 to February 2009, the Fed experienced a 50 percent decline in the value
of assets held.
C. From February 2008 to March 2009, Fed assets more than doubled to nearly $2 trillion.
D. From February 2008 to March 2009, Fed lending caused the U.S. public debt to rise by
over $1 trillion.
C. From February 2008 to March 2009, Fed assets more than doubled to nearly $2 trillion.
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For which of the following types of goods would the income elasticity of demand be positive and relatively large?
a. all inferior goods b. all normal goods c. goods for which there are many complements d. luxuries
An increase in nominal GDP (with inflexible prices) results in:
a. an increase in the nominal rate of interest. b. an increase in the U.S. dollar exchange rate. c. a decrease in the nominal rate of interest. d. increased price and wage flexibility.
If all resources were perfectly adaptable for alternative uses, the production possibilities curve would
A) be bowed out. B) be bowed in. C) be a straight line. D) not exist.
Refer to the Article Summary. Assume that more foreign governments and hospitals begin to offer and publicize their medical services to American medical tourists and, due to the growing number of aging baby boomers, more Americans desire hip-
replacement surgery. All else equal, what will happen in the market for hip-replacement surgery as a result of these two factors? A) Demand will increase, but these two factors will not shift the supply curve. B) Demand and supply will both increase. C) Demand will increase and supply will decrease. D) Supply will increase, but these two factors will not shift the demand curve.